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Unbundling Truthful Revelation when Auctioning Bundled Goods

Author

Listed:
  • Pascal Courty

    (University of Victoria)

  • Daniel Rondeau

    (University of Victoria)

  • Maurice Doyon

    (Université Laval)

Abstract

We study a seller who auctions bundles of goods and is interested in learning the buyer's valuations for each individual good. We show that truthful revelation is never the unique dominant strategy when each bundle contains multiple goods. We study the case with linear bundles and propose auction rules that eliminate all non-truthful reports for the Becker-Degroot-Marschak mechanism and the Vickrey auction.

Suggested Citation

  • Pascal Courty & Daniel Rondeau & Maurice Doyon, 2015. "Unbundling Truthful Revelation when Auctioning Bundled Goods," Economics Bulletin, AccessEcon, vol. 35(4), pages 2512-2517.
    • Handle: RePEc:ebl:ecbull:eb-15-00685
    as

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    References listed on IDEAS

    as
    1. Shogren, Jason F. & Margolis, Michael & Koo, Cannon & List, John A., 2001. "A random nth-price auction," Journal of Economic Behavior & Organization, Elsevier, vol. 46(4), pages 409-421, December.
    2. Krishna, Vijay, 2009. "Auction Theory," Elsevier Monographs, Elsevier, edition 2, number 9780123745071.
    3. William Vickrey, 1961. "Counterspeculation, Auctions, And Competitive Sealed Tenders," Journal of Finance, American Finance Association, vol. 16(1), pages 8-37, March.
    4. Jehiel, Philippe & Meyer-ter-Vehn, Moritz & Moldovanu, Benny, 2007. "Mixed bundling auctions," Journal of Economic Theory, Elsevier, vol. 134(1), pages 494-512, May.
    5. Messer, Kent D. & Poe, Gregory L. & Rondeau, Daniel & Schulze, William D. & Vossler, Christian A., 2010. "Social preferences and voting: An exploration using a novel preference revealing mechanism," Journal of Public Economics, Elsevier, vol. 94(3-4), pages 308-317, April.
    6. Blume, Andreas & Heidhues, Paul, 2004. "All equilibria of the Vickrey auction," Journal of Economic Theory, Elsevier, vol. 114(1), pages 170-177, January.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Auction; truthful revelation; Becker-Degroot-Marschak mechanism; Vickrey auction;
    All these keywords.

    JEL classification:

    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation

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